Aperture Discover Equity - Q3 2024 Manager Commentary
In Short
Aperture Discover Equity Fund: Commentary for Q3 2024
Quarter in review
The Fund returned 10.55% net of fees, outpacing the index by 127 bps. This past quarter has been one of the better periods for small cap performance in recent years. We saw good underlying fundamental and stock price performance across most of the holdings in the portfolio driving our performance up 14.80% net of fees YTD through September.
As we have written in previous letters, we believe there to be a valuation disconnect in small vs. large caps, which, amidst a shifting macroeconomic landscape, creates a compelling backdrop for small-caps. As we head into the end of the year, our team remains optimistic. Small caps outperformed large caps by a wide margin in the third quarter. The Russell 2000 index outperformed the S&P 500 by over 300 bps and the fund’s net return outpaced both indices. We think there is good reason to expect small caps to continue to perform well as we head into 2025.
Download the full commentary below:
